Tanzanian startup gets US$32m in funding to boost CPG supply chain
By our News Team | 2022
Consumer-packaged goods industry in Africa is being ‘systematically transformed’ by Ramani’s ‘huge ambition’, investor says.
Supply chain processes in Tanzania – and Africa in general –are set for a boost following the announcement that Tanzanian-based software-as-a-service (SaaS) startup, Ramani, has raised US$32-million in international funding to help digitise the country’s supply chain.
Founded in 2019 by Kibet Martin, Iain Usiri, and Calvin Usiri, Ramani operates in the consumer-goods supply chain. More specifically, the funds will be used to scale its network of micro-distribution centres (MDCs) and also to launch a new micro-credit offering for selected MDCs.
The Ramani senior leadership team. Photo credit: Ramani
According to the technology website, TechCabal, lack of access to credit facilities and data has been a common problem for these supply chains.
To remedy this, Ramani provides tech-enabled inventory management systems, procurement services, and point-of-sale (POS) software to help digitise the processes of the MDCs.
“The startup provides inventory to the MDCs on credit, through the data gathered from these services. Earlier this year, Ramani acquired a lending license from the Central Bank of Tanzania,” TechCabal reported.
Struggling with limited access to actionable data
“Global giants like Coca-Cola and Pepsi have used these MDCs to reach the millions of ‘mom-and-pop shops’ on the continent. But just like Amazon, they have struggled with access to actionable data that might help their production planning, marketing and inventory management. Ramani is providing a solution to these companies,” the website said.
Ramani CEO, Iain Usiri, is quoted by the website Disrupt Africa as saying: “Ultimately, we want to make it easier for businesses to succeed in Africa and this new capital is another brick in that foundation. We’ve leveraged our Silicon Valley relationships and partnered with globally renowned investors, many of whom are successful founders themselves. We’re committed to repaying their faith in us and in Africa.”
The website also quotes Andrew Vigneault of Flexcap Ventures, one of the investors, as saying the consumer-packaged goods industry in Africa is being systematically transformed by Ramani’s huge ambition for a vastly improved and more efficient supply chain.
According to Ramani, Africa’s supply chains are broken because of a lack of data transparency and a lack of access to financial services. Their product needs are unmet and their financial needs are unmet – despite the fact that Africa’s CPG supply chain alone is worth $1-trillion.
“We’re building an ecosystem of brands, micro-distribution centres and merchants. We connect them through our supply chain management software. We’ve started with a POS app for micro-distribution centres which integrates into a web dashboard that gives them sales visibility. We’ll then embed financial services into our software,” Ramani explains.